Animoca Brands has denied claims that it reduced its metaverse funding target by $200 million, or 20%, to $800 million due to volatility in the crypto market and instability in the banking sector.
Animoca Brands Denies News About Metaverse Fund
Over the past time, there have been rumors that Animoca brands has reduced its metaverse target by $200 million to $800 million. The company denied these claims with a statement.
In addition to denying the allegations, the company also downplayed rumors that its valuation had fallen from $6 billion as of July 2022 to $2 million in March 2023. The allegation was reported by Reuters on March 24, citing an anonymous source, as follows: Animoca brands had initially halved its $2 billion metaverse funding target in January and recently cut it by another 20% to $800 million.
For Mid-to-Late
The fund was announced in November 2022 for mid-to-late-stage startups focused on the metaverse. With the announcement, Yat Siu, co-founder and chairman of Animoca brands, announced that the fund’s target is between $1 billion and $2 billion, depending on how much funds are raised.
Explanations of the Subject
Animoca said in a press release: “The claim that the Animoca Capital fund target was ‘cut’ from $2 billion to $1 billion is not correct, because $1 billion has always been within the range declared.”
Stating that the problems experienced in the banking sector on the US side necessarily have an impact, Animoca underlined that the final amount collected for the fund has not yet been determined. In addition, the company said the following:
“There’s no doubt that the FTX and banking crises have had a serious impact on available venture capital, but fundraising for the Animoca Capital fund is in progress. When the raise is concluded, we will inform the market with the appropriate details, including the final size of this fund,”
Sui, the company’s president, emphasized that the information circulating in the press ultimately came from an anonymous source, adding that the experience was regrettable.
About Animoca Stocks
Animoca traded as AB1, was listed on the ASX in the company’s early days. However, it was delisted in March 2020 after the ASX alleged that Animoca had breached listing rules by, among other things, engaging in crypto-related activities. Since then, its shares have been traded on stock-focused exchanges such as PrimaryMarkets, which is based in Sydney. While data from this platform was used to calculate AB1’s total market capitalization of around $2 billion, Animoca said that these figures do not accurately reflect the total value of the company.
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